Contractors and sub contractors finance
Despite the construction industry suffering a consecutive 22 months in decline, there are still glimmers of hope for those operating in this sector.
There is no doubt that the construction industry has been one of the worst hit by the economic downturn with countless jobs and millions of pounds lost as a result of inactivity and bad debts.
Despite the industry suffering a consecutive 22 months in decline, there are still glimmers of hope, with 62 per cent remaining positive that future recovery of the sector will remain in line with that of the wider economy.*
Contractors and sub-contractors for both the construction and other related contractual industries have always suffered from cash flow issues in regards to funding work where payment is based on agreed sums being paid at agreed dates according to the contract. Trying to fund these contracts can cause construction businesses serious cash problems and this has led to a large numbers of businesses suffering cash shortages when funding is most needed to finance new work.
The construction sector has over the years picked up the reputation as a high risk sector that funding providers have been reluctant to fund due to various reasons.
However, there are UK lenders actively willing to fund this type of client and their associated contracts, offering up to 70% advance rates, as well as other attractive benefits.
There are now options available to feed much needed cash into the construction sector which can generally be funded either with or without a JCT contract and it does not matter if the client is a CIS 4/5 or 6 in relation to how they pay their PAYE etc.
To find out more about funding for the construction industry, call Cashflow UK today on 0800 132 156.
